Immigration enforcement and remittances

Abstract:

Increases in the immigration enforcement at the community and state level may have impacted Mexican migrants’ remitting patterns. In this paper, we focus on three policies: E-Verify mandates, 287(g) agreements, and Secure Communities and examine how they impact migrants’ remitting patterns. We find that increased immigration enforcement reduces the share of undocumented immigrants sending money home. Nonetheless, migrants who continue to remit money home increase their money outflows following the enactment of E-Verify mandates and 287(g) agreements supporting the notion that, in the midst of increased uncertainty about their migration experience, migrants increase their outflows for self-insurance purposes. The increase appears to offset any potential decreases stemming from reductions in altruistic remittances.